Question

5. On 31st March, 2017, the following balances stood in
the books of Jyoti Ltd. :
11% Debentures
29,00,000
Debenture redemption fund
9,60,000
Debenture redemption fund investments :
26,00,000, 10% Govt. loan purchased for 6,24,000
3,60,000,8% Railways bonds purchased for
3,42,000
To redeem the Debentures on the above date
investments were sold on the same day as follows:
10% Govt. loan at par
8% Railways bonds at 98.
Prepare necessary accounts.​

Answer 1

Answer:will try

Explanation:c

Sinking fund investments journal:

Sinking fund investment a/c 966000₹

To bank a/c 966000₹

( investments purchased 624000+342000)

Sold the same investments for profit.

Bank a/c 35904000₹ (624000+((98*360000)

To sinking fund investment a/c 966000₹

To sinking fund profit a/c 3493800₹ (35904000-966000)

Then in the debenture holders pass The transactions in debit and credit columns as the time here is not sufficient to complete the task typing. http://www.yourarticlelibrary.com/accounting/debentures/sinking-fund-method-of-redemption-of-debenture-accounting-entries/46971

Also create sinking fund investment account like mentioned in the webpage